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On December 31, 2019, Cheerful Company received the following notes: From ABC Company From JKL Company P3,000,000 P3,000,000 P3,000,000 Due on October 31, 2020

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On December 31, 2019, Cheerful Company received the following notes: From ABC Company From JKL Company P3,000,000 P3,000,000 P3,000,000 Due on October 31, 2020 Due on December 31, 2022 P1,000,000 due every December 31 From XYZ Company On all notes, interest is calculated on the outstanding principal balance at the annual rate of 10% and payable at maturity except the note issued by XYZ in which interest is payable every year-end starting December 31, 2020. The market interest rate for similar notes on December 31, 2019 was 12%. The compound interest factors to convert future value into present value at 12% follow: Present value of 1 due in 10 months 0.9099 Present value of 1 at 12% in one period 0.8929 Present value of 1 at 12% in two periods 0.7972 Present value of 1 at 12% in three periods 0.7118 Instructions: Type the numerical answer (whole number) in the box. NO need for peso sign. Use comma as separator like this 100,000 1. How much is the present value of the note receivable from JKL on December 31, 2019? Blank 1 2. How much is the present value of the note receivable from XYZ on December 31, 2019? Blank 2 Blank 1 Add your answer Blank 2 Add your answer

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